The Role of a Business Lawyer in the Formation Stage

At the startup stage of any business, owners are understandably looking for every opportunity to decrease expenses. Entrepreneurs are keen to only spend money that keeps the lights on for the near future.

Because Georgia business owners are not required by law to retain an attorney when starting a company, many view the costs associated with business attorneys as less-than-critical. With so many resources available online, it is easy to view legal expertise as nothing more than a commodity. This line of thinking, though understandable, often places a startup in an incredibly risky position before it even secures its first client. 

What Type of Business Do You Need?

The first legal decision business owners must make involves the legal structure of their business. Traditional corporations (known as C-corporations) are effective for businesses operating in high-growth industries and entrepreneurs with ambitions of expanding across the nation.

Limited liability companies (LLCs) combine favorable elements from C-corporations and sole proprietorships, which makes them popular among today’s business owners. Limited partnerships are also popular in Georgia. Ultimately, determining the best structure for your business is much more complex than reading the general descriptions on the Secretary of State’s website. Your company is unlike all others; because your business is unique, you need personalized legal attention to help you figure out its optimal legal structure.

Your Business Runs on Contracts

From internal documents (such as a partnership agreement) to agreements with third-party suppliers, contracts—and their underlying strength—will deeply impact your company’s long-term viability. In today’s business climate, you and your business cannot rely on informal agreements. Contracts form the legal foundation of your business, and they must be in writing.

Again, the internet provides a host of resources that purportedly help business owners who are in startup mode. Finding generic contracts that align with your company is easy, but finding the perfect contract for your business and its unique circumstances is impossible to do online. Online forms might cover the basics but leave vulnerabilities elsewhere. Additionally, the average contract form you can find online will almost certainly not adhere to the laws of the states where you plan to do business.

Building a Strong Brand

Branding your startup has as much to do with legal considerations as it does with marketing. Without an effective and unique business name, the chances of establishing a memorable brand are slim. Before you choose a business name, though, you need to ensure it does not infringe on other registered business names. The same concept applies to intellectual property. Nothing can be more demoralizing—and financially ruinous—to sink time and money into developing a brand that cannot be continued because it copies existing business names.

Contact A Knowledgeable Atlanta Business Attorney

The three reasons we mentioned in this blog for retaining a business lawyer are far from the only reasons why retaining a business lawyer is a good investment during the startup phase. Spending money now could save your company much more than you might have to pay for legal issues down the road. 

The Anderson Firm focuses on helping entrepreneurs get to where they want to go. Attorney Precious Anderson and the rest of the team pays attention to every detail while never losing sight of the big picture. Contact The Anderson Firm today to schedule an appointment with a professional and savvy legal team.

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The Anderson Firm, LLC

Precious Anderson knows her clients want quick, painless solutions for their small to mid-sized business problems.

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